Form 4: Air Products Director Lisa Ann Davis Reports Acquisition of Phantom Stock Units

Lisa Ann Davis, a director at Air Products & Chemicals, Inc., reported the acquisition of phantom stock units under the company's Deferred Compensation Program for Directors.

Summary

• On March 31, 2024, Lisa Ann Davis, a director at Air Products & Chemicals, Inc., acquired 21.3229 phantom stock units.
• These units were acquired under the Air Products Stock Account of the issuer's Deferred Compensation Program for Directors, as part of the Company's Long-Term Incentive Plan.
• The price per unit was $242.27, and the reporting person directly owns 2,973.261 phantom stock units following the transaction.
• These units are payable in the form of shares of common stock equal in number to the Units, at the time elected by the reporting person, which is generally after service on the Company's Board of Directors ends.
• Units may be paid in a lump sum or up to ten installments as elected by the reporting person in advance.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a neutral to slightly positive sentiment as it aligns director interests with company performance.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The Deferred Compensation Program for Directors and Long-Term Incentive Plan are designed to reward and retain key personnel.

Future Outlook

The phantom stock units will be payable in shares of common stock at a future date elected by the reporting person, generally after service on the Company's Board of Directors ends.

Industry Context

Director compensation through stock and phantom stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Companies like Linde, Sherwin-Williams, and PPG Industries also utilize stock-based compensation for their directors.
• The specific terms of deferred compensation plans vary, but the general goal is to incentivize long-term value creation.
• The amount of phantom stock units acquired is relatively small compared to the overall market capitalization of Air Products & Chemicals, Inc.

Stakeholder Impact

• The acquisition of phantom stock units by a director has a minimal direct impact on stakeholders.
• It reinforces the alignment of director interests with shareholder value.

Key Dates